Systems and methods for providing insurance and non-insurance products

ABSTRACT

A method of providing insurance to a customer that comprises the steps of: (1) selling a service contract to the customer that provides protection against the mechanical breakdown or other failure of an item (and in some cases, accidental damage); and (2) in response to the customer purchasing the service contract, providing, at no cost to the customer, third-party-paid insurance coverage that protects the customer against damage to the item, which, in some cases, includes accidental damage. In one embodiment of the invention, the step of providing the third-party-paid insurance coverage is done in order to permit the provision of insurance without the use of a licensed insurance agent.

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] This application claims priority from U.S. provisionalapplication Serial No. 60/411,997, filed Sep. 20, 2002, which is titled“Wireless Protection Plan”, and which is hereby incorporated byreference.

BACKGROUND OF THE INVENTION

[0002] Most states have laws in place specifying that only a licensedinsurance agent may sell property and casualty insurance. As a result,retailers, manufacturers or service providers that wish to provideproperty and/or casualty insurance to a customer at an item's point ofsale must arrange for an insurance agent or the insurer to sell theinsurance directly to the customer. This can be expensive and, often,infeasible for the retailer.

[0003] In addition, consumers often purchase a contract of propertyand/or casualty insurance that covers damage to, or the loss (includingtheft) of, all or part of an item such as a personal electronic device(e.g., a cellular phone, PDA, or two-way pager), even when the item iscovered by a service contract that covers item failures, such as themechanical breakdown of the item. As a result, customers often have twoor more different contracts for a single item. This requires customersto keep track of two or more separate contracts, and can make itadministratively difficult and confusing for customers to arrange forthe repair or replacement of, or indemnity for, a failed, damaged, orlost item. In light of the above, there is a need for improved systemsand methods for providing property insurance (and/or other insuranceproducts) to a customer, especially at an item's point of sale.

SUMMARY OF THE INVENTION

[0004] A method of providing insurance to a customer according to oneembodiment of the invention comprises the steps of: (1) selling aService Contract to the customer that provides protection against themechanical breakdown or other failure of an item or its parts; and (2)in response to the customer purchasing the Service Contract, providing,at no cost to the customer, third-party-paid insurance coverage thatprotects the customer against accidental damage to, and/or loss(including theft) of, the item or a component part. In a particularembodiment of the invention, the step of providing the third-party-paidinsurance coverage is done in order to permit the provision of insurancewithout the sale of the insurance by an insurance agent. Thethird-party-paid insurance coverage may be paid for, for example, by aretailer selling the item to the customer, a manufacturer of the item,or a service provider (including a wireless service provider) thatprovides service or functionality for the item. In one embodiment of theinvention, the service contract and the third-party-paid insurancecoverage are referred to by a single identification indicia, such as aplan number.

[0005] A method, according to another embodiment of the invention, ofprocessing a request that an item be repaired or replaced comprises thesteps of: (1) receiving the request at a central claim processingfacility; (2) determining (e.g., by a central claim processing facilityrepresentative) whether the item requires replacement or repair due to adevice failure or damage under the terms of a service contract, or aloss under an insurance contract (e.g., damage or theft); (3) inresponse to determining that the item requires replacement or repair dueto a device failure or damage under the terms of the service contract,submitting (e.g., by a central claim processing facility representative)a request to a first provider to process the item according to a servicecontract that is provided by the first provider; and (4) in response todetermining that the item requires replacement, repair or indemnityunder the insurance policy (e.g., due to other loss, including theft),submitting a request to a second provider to process the item accordingto an insurance provision that is provided by the second provider. In aparticular embodiment of the invention, one or more of the above stepsis executed at the central claim processing facility.

[0006] A product protection program according to another embodiment ofthe invention comprising a service contract that is paid for by a firstentity, and insurance coverage that is paid for by a second entity. In aparticular embodiment of the invention, the service contract andinsurance policy are referenced by a single identification indicia, suchas a plan number. Also, in one embodiment of the invention, the firstentity is a customer who has purchased an item that is covered under theproduct protection program, and the second entity is, for example, aretailer that has sold the item to the customer or a wireless carrierthat is to provide wireless service for the item.

[0007] In a particular embodiment of the invention, the productprotection program provides that: (1) in response to the second customerfailing to submit timely payment for the insurance coverage, theinsurance coverage will be interrupted; and (2) the service contractwill not be interrupted in response to the second customer failing tosubmit timely payment for the insurance coverage. Furthermore, in oneembodiment of the invention, the product protection program providesthat: (1) in response to the first customer failing to submit timelypayment for the service contract, the service contract will beinterrupted; and (2) the insurance coverage will be interrupted inresponse to the first customer failing to submit timely payment for theservice contract.

[0008] A method, according to yet another embodiment of the invention,of processing a request that an item be repaired or replaced comprisesthe steps of: (1) receiving the request at a central claim processingfacility; (2) determining whether the item requires replacement orrepair due to a device failure, accidental damage, theft, or other loss;(3) in response to determining that the item requires replacement orrepair due to a device failure (e.g., accidental damage under the termsof some service contracts), submitting a request to a first provider toprocess the item according to the service contract (which may bereferred to as “first provider coverage” that is provided by the firstprovider; and (4) in response to determining that the item requiresreplacement or repair due to loss under the insurance policy (which maybe accidental damage, theft or other loss), submitting a request to asecond provider to process the item according to insurance coverage(which may be referred to as “second provider coverage”) that isprovided by the second provider.

BRIEF DESCRIPTION OF THE DRAWINGS

[0009] Having thus described the invention in general terms, referencewill now be made to the accompanying drawings, which are not necessarilydrawn to scale, and wherein:

[0010]FIG. 1 is a block diagram of a system according to one embodimentof the invention.

[0011]FIG. 2 is a flow chart of an enrollment process according to aparticular embodiment of the invention.

[0012]FIGS. 3A and 3B depict a flow chart of an exemplary claim filingprocess according to a further embodiment of the invention.

[0013]FIGS. 4A and 4B depict a flow chart of a first claim processingmethod according to yet another embodiment of the invention.

[0014]FIGS. 5A and 5B depict a flow chart of a second claim processingmethod according to another embodiment of the invention.

DETAILED DESCRIPTION OF VARIOUS EMBODIMENTS OF THE INVENTION

[0015] The present invention will now be described more fullyhereinafter with reference to the accompanying drawings, in whichvarious embodiments of the invention are shown. This invention may,however, be embodied in many different forms and should not be construedas limited to the embodiments set forth herein. Rather, theseembodiments are provided so that this disclosure will be thorough andcomplete, and will fully convey the scope of the invention to thoseskilled in the art. Like numbers refer to like elements throughout.

[0016] Definitions

[0017] As used in this disclosure, the term “property coverage” may beused, for example, to refer to an extended service contract (e.g., anextended warranty), or a property insurance policy.

[0018] Also, as used in this disclosure, the term “provider” refers toany entity providing a service contract (e.g., an extended servicecontract or an extended warranty) or a debt protection product (e.g., adebt deferment or debt cancellation contract). The term “provider” alsorefers to any entity providing (e.g., underwriting) an insurance policy,such as theft insurance, accidental death insurance or accidental damageinsurance.

[0019] The term “repair or replace” includes the repair, replacement orsubstitution of the item or one or more component parts, as well aspayment in the rare case where repair, replacement or substitution isnot possible.

[0020] Nature of the Property Coverage

[0021] A product protection program according to one embodiment of theinvention comprises first property coverage and second propertycoverage. In one embodiment of the invention, the first propertycoverage is a service contract that covers the failure (e.g., themechanical breakdown) of an item such as a wireless device. In oneembodiment of the invention, this service contract includes a “no-lemon”provision, which specifies that, if an item fails for the same reasons apre-determined number of times (e.g., two, three, or four times), theitem will be replaced rather than repaired.

[0022] In a particular embodiment of the invention, the second propertycoverage covers accidental damage to the item (such as damage caused byaccidentally dropping the item), and/or other loss of the item (e.g.,loss of the item through theft, fire, storm, burglary, naturaldisasters, war, riot, or other peril).

[0023] In another embodiment of the invention, the first propertycoverage is a service contract that covers both the failure of the itemand accidental damage to the item. In one embodiment of the invention,the second property coverage covers other accidental loss of the item,but not accidental damage to the item.

[0024] In a preferred embodiment of the invention, there is little or nooverlap between the first property coverage and the second propertycoverage. However, in other embodiments of the invention, there may beoverlap between the first property coverage and the second propertycoverage.

[0025] Payment for the Property Coverage

[0026] In an embodiment of the invention, the first property coverageand the second property coverage are paid for by different entities. Forexample, in a particular embodiment of the invention, a first customer(e.g., the owner of the covered item) is responsible for paying for thefirst property coverage and a second customer (e.g., a retailer of thecovered item, a service provider, such as a wireless carrier providingwireless service for the insured item, or a manufacturer of the insureditem) is responsible for paying for the second property coverage. Aswill be understood by one skilled in the relevant field, the first andsecond property coverage may be set up to be paid monthly, annually, oraccording to any other convenient schedule. In one embodiment of theinvention, the first and/or second customer may be billed regularly forthe first and/or the second property coverage (e.g., as part of aregular bill for wireless service).

[0027] Providers of the Property Coverage

[0028] In an embodiment of the invention, different providers providethe first and second property coverage. For example, in one embodiment,the first property coverage is provided by a first entity and the secondproperty coverage is provided by a second entity.

[0029] Offer of the Property Coverage to a Customer

[0030] In one embodiment of the invention, the first property coverageis offered for sale to a customer when the customer purchases aparticular item that would be covered by the first property coverage.For example, in a particular embodiment of the invention, this occurs atthe point of sale of the item (e.g., a traditional retail store such asCircuit City, or an Internet-based store such as Amazon.com).

[0031] In one embodiment of the invention, the second property coverageis at least initially provided (e.g., automatically) at no cost to thecustomer in response to the customer purchasing the first propertycoverage. For example, when a customer purchases a cellular phone atSears, a Sears representative may offer to sell the customer a servicecontract (e.g., an extended warranty) that covers failures (such asmechanical failures and, where permitted, accidental damage) of thecellular phone beyond the cellular phone's normal warranty period. Inresponse to the customer purchasing this service contract, Sears mayautomatically pay for property coverage (e.g., insurance coverage) thatcovers the product against damage or other loss. In this example, theservice contract may be considered first property coverage (which ispaid for by the customer) and the insurance coverage may be consideredsecond property coverage (which is paid for by the retailer, Sears).

[0032] In another embodiment of the invention, the first propertycoverage is offered to the customer for purchase within a pre-determinedtime period (e.g., 30, 60 or 90 days) after the customer purchases theitem to be covered under the service contract. In one embodiment, thesecond property coverage is then automatically provided to the customerin response to the customer purchasing the first property coverage. Forexample, after the customer purchases a cellular phone from a retailer,such as Sears, the retailer (or its contractor) may contact the customer(e.g. via phone call, e-mail message, or paper mail) to inform thecustomer that the customer has the option of purchasing the firstproperty coverage. If the customer purchases the coverage, the customerautomatically receives the second property coverage paid for by Sears.

[0033] Relationship Between the First and Second Property Coverage

[0034] In any of the embodiments of the invention described in thisdisclosure, the first and the second property coverage (e.g., a servicecontract and a property insurance policy) may be provided within aproduct protection program. In any of the embodiments of the inventiondescribed in this disclosure, the first and the second property coveragemay be provided within two or more separate contracts.

[0035] In one embodiment of the invention (preferably in which the firstand second property coverage is provided within a property protectionprogram), the first and second property coverage is set up so that iftimely payment is received for the first property coverage, but not thesecond property coverage, the second property coverage will beinterrupted, but the first property coverage will not be interrupted.However, in a particular embodiment of the invention, the first and thesecond property coverage are also set up so that if timely payment isreceived for the second property coverage, but not the first propertycoverage, both the first and the second property coverage will beinterrupted. This aspect of the invention is particularly useful whenthe first property coverage is to be paid for by a first entity and thesecond property coverage is to be paid for by a second entity that isnot the first entity.

[0036] In another embodiment of the invention, the second propertycoverage (insurance policy) is set up so that if timely payment is notreceived for the second property coverage, only the second propertycoverage (insurance coverage) will be interrupted. In a furtherembodiment of the invention, the second property coverage (insurancepolicy) is set up so that if payment is not received for the firstproperty coverage (service contract), both the first and the secondproperty coverage will be interrupted.

[0037] Method of Processing Insurance claims

[0038] In one embodiment of the invention, a centralized claimprocessing center (which, for example, may be managed by a third partyclaim administrator) is provided for processing claims covered by aproduct protection program, such as those described above. In aparticular embodiment of the invention, the claim processing centerprocesses, or facilitates processing of, both claims filed according tothe terms of first property coverage (e.g., a service contract thatcovers against the failure of a particular item and in some cases,accidental damage), and claims filed according to the terms of secondproperty coverage (e.g., insurance coverage that provides protectionagainst damage to, and/or loss of, the particular item). As noted above,in one embodiment, different providers provide the first and secondproperty coverages. In addition, in one embodiment, the first and thesecond property coverage are paid for by different entities or paid forby the same entity that pays for the second property coverage.Furthermore, in one embodiment of the invention, the first and secondproperty coverage are part of a product protection program that isreferenced by a single identification indicia (such as a plan number).

[0039] The centralized claim processing center preferably handles theprocessing of all (or substantially all) claims filed according to theterms of the first property coverage and the second property coverage.For example, in one embodiment of the invention, if the item covered bythe first and the second property coverage is not working for any reason(and/or has been lost), the owner of the item may simply call thecentralized claim processing center and explain the condition of theitem (and provide any other relevant information) to a customer servicerepresentative. The customer service representative (or other individualassociated with the centralized claim processing center) then determineswhether the first and/or the second property coverage would cover repairor replacement of the item. If the item is covered under the first orsecond property coverages, the customer service representative (or otherindividual associated with the centralized claim processing center)arranges for the item to be repaired or replaced at the expense of theproper provider.

[0040] For example, if the damage to the item is covered under the firstproperty coverage, which is provided by a first provider, the customerservice representative (or other individual associated with thecentralized claim processing center) arranges for the item to berepaired or replaced at the expense of the first provider. Similarly, ifthe damage to the item is covered under the second property coverage,which is provided by a second provider, the customer servicerepresentative (or other individual associated with the centralizedclaim processing center) arranges for the item to be repaired orreplaced at the expense of the second provider. In one embodiment of theinvention, if the claim is covered under the first or second propertycoverage, the central claim processing center directs the claim inaccordance with pre-determined guidelines as to which provider the claimis to be submitted.

[0041] In one embodiment of the invention, an advantage of thiscentralized processing of the item is that it makes it easier forcustomers to handle the administrative aspects of maintaining twodifferent types of protection for a single item. If the item is lost, isaccidentally damaged, or suffers a failure (e.g., a mechanical breakdownor other failure), in a particular embodiment of the invention, the userneed only use a single set of contact information (e.g., a telephonenumber, a street address, or Internet address) to contact a customerservice representative (and, in one embodiment of the invention, returnthe item as instructed) and the customer service representative (orother individual associated with the centralized claim processingcenter) will arrange for any appropriate repair or replacement of theitem.

[0042] In an alternative embodiment of the invention, the customer isprovided with two or more different sets of contact information (e.g.,telephone numbers, street addresses, or Internet addresses) for filingclaims according to the plan protection program. For example, thecustomer may be provided with a first set of contact information to usefor filing a claim if the item is lost or is in need of replacement orrepair due to accidental damage. Similarly, the customer may be providedwith a second set of contact information to use for filing a claim ifthe item suffers a failure, such as a mechanical breakdown. In oneembodiment of the invention, the first set of contact information iscontact information for a first provider that provides first propertycoverage that protects against a failure (e.g., a mechanical failure) ofthe item. Similarly, in one embodiment of the invention, the second setof contact information is contact information for a second provider thatprovides second property coverage that protects against damage to, orother loss of, the item.

[0043] Exemplary System According to an Embodiment of the PresentInvention

[0044]FIG. 1 is a block diagram of an exemplary contract system 100according to one embodiment of the invention. As may be understood fromthis figure, this system comprises various components that are connectedto exchange information via one or more networks 110 (such as theInternet, a LAN, or any other suitable network). The system componentsinclude a Point of Sale (POS) terminal 105, which may be, for example, acomputer terminal within a retail store or a customer computer that isconnected to the Internet. The system may further include a wirelesstower 135 for facilitating communication between one or more wirelessdevices such as a cellular phone and the various system components.

[0045] The system components may also include a Customer ServiceRepresentative (CSR) terminal 120, which may be located, for example, ata central claim processing facility or at the offices of a first or asecond provider. This CSR terminal 120 is configured to facilitatecustomer service for one or more property protection plans according tothe present invention, including enrollment, fulfillment, claimsprocessing and repair/replacement requests. Accordingly, the CSRterminal 120 is preferably configured to add, retrieve and updateinformation stored in a database 125, which is discussed in greaterdetail below.

[0046] The system further includes a repair depot terminal 130, whichmay be, for example, a computer terminal within a repair depot (such asa repair depot for wireless items). In one embodiment of the invention,this repair depot is an entity that replaces and/or damaged items onbehalf of the first or second provider. This repair depot may be managedor owned, for example, by a retailer, a wireless provider, amanufacturer, or a third party. This repair depot terminal 130 ispreferably configured for allowing repair depot representatives toreceive customer and contract information (such as an authorization froman provider to repair or replace a particular item), and fortransmitting repair-related data (and other information) from the repairdepot to other system components.

[0047] The system further comprises a database 125 that is configuredfor storing information received from other system components, and forallowing the system's various components to access information storedwithin the database 125. For example, when a customer signs up for anextended service plan, the customer's personal information (their name,address, and contact information) may be entered into the POS Terminal105 and transmitted to the database 125 via the Network 110 for storage.That customer information may later be accessed, as needed, by repairworkers using the repair depot terminal 130, or by a customer servicerepresentative using the CSR terminal 120. As will be understood by oneskilled in the relevant field, the database 125 may be either a singledatabase or multiple databases (which are either at a central locationor distributed throughout various remote locations). In one embodimentof the invention, the database 125 is maintained within a centralcomputer, such as an IBM AS/400 Midrange Server.

[0048] The database 125 may be configured to include, for example,information related to: (1) the customer; (2) one or more items to beprotected by the product protection program (e.g., the make, model, andserial number of each of these items); (3) products, services, andinsurance protection purchased by or afforded to the customer; (4)claims filed by the customer; and (5) the repair history of items ownedby the customer. It should be understood that many other types of usefulinformation may also be stored within the database 125.

[0049] As will be understood by one skilled in the relevant field inlight of this disclosure, a system for implementing products accordingto the present invention may be set up to perform a periodicreconciliation process in order to update the status of various customeraccounts within the system's database. For example, during thisreconciliation process, the system may initiate the transmission of datafrom various remote computers (and other data sources), such as the POSterminal, the repair depot terminal, and the CSR terminal to determineidentify any recent payments, outstanding payments due, policycancellations, new customers, and other useful information. The systemcan then update the system's database according to this information.

[0050] As will be understood to one skilled in the art in light of thisdisclosure, the system 100 shown in FIG. 1 is merely an exemplaryembodiment of a system according to the present invention. Systemcomponents may be added, omitted, modified, or combined in any way knownin the art.

[0051] Exemplary Enrollment Process

[0052] An exemplary enrollment process 200 according to one embodimentof the invention is shown in FIG. 2. As may be understood from thisfigure, this process begins at Step 210, where a customer purchases froma retailer an item and an extended service contract (e.g., an extendedwarranty) from a retailer, preferably at the same time as the item. Inone example, the customer pays for this extended service contract andthe first provider provides the extended service contract. This extendedservice contract protects against item failures, such as a mechanicalbreakdown of the item (which, as will be understood by one skilled inthe art, would also include an electrical breakdown of the item).

[0053] In this example, the retailer will provide, at no cost to thecustomer, property coverage that protects against damage to, or otherloss of, the item. A second provider provides this property coverage.

[0054] In response to the customer purchasing the extended servicecontract at Step 210, at Step 220, the retailer forwards payment and thecustomer's enrollment file to the first provider. In one embodiment ofthe invention, the enrollment file specifies that the coverage under thecontract is to begin on the date on which the item was purchased.However, the contract may be set up to begin at any other convenienttime, such as when additional information is received from the customer,or after the manufacturer's or other warranty has expired.

[0055] At Step 230, the first provider then processes the customer'senrollment file, applies the payment for the extended service contract,and forwards the customer's enrollment data for the second propertycoverage to the second provider. Finally, at Step 240, the firstprovider mails the customer a fulfillment kit. This fulfillment kit mayinclude, depending upon the coverage, for example, a welcome letter, theservice contract or an insurance policy or certificate, which provide“terms and conditions” of the first or second property coverages. In oneembodiment of the invention, the insurance policy or certificate (secondproperty coverage) is drafted to convey to the customer that the firstand the second property coverages are interdependent.

[0056] The fulfillment kit may also include a request that the customerprovide additional information (e.g., via paper forms, the Internet, ortelephone). The customer may be instructed to provide this information,for example, to a provider, a retailer, or a wireless provider,depending on the terms of the contract.

[0057] Once the first and second property coverage is in place for theitem, the customer may file a claim if the item fails, is accidentallydamaged, or accidentally lost or otherwise is the subject of a loss.FIGS. 3A and 3B depict an exemplary claim processing process 300according to one embodiment of the invention. First, at Step 310, thecustomer initiates a request for repair or replacement of the item. Thecustomer may do this, for example, by calling a toll-free number of acentralized claim processing center. Alternatively, the customer maysend the item, along with a claim form, to either a centralized claimprocessing center, the first provider, the second provider, or any othersuitable entity. As a further alternative, the customer may initiate arequest for repair or replacement of the item via the Internet.

[0058] Next, at Step 320, a customer service representative (which maybe, for example, an automated voice response system, or an employee orrepresentative of the first provider or the second provider) verifiesthe customer's service contract and the customer's insurance policyinformation. Next, the customer service representative determineswhether the item has suffered an event covered under the servicecontract (such as a mechanical breakdown, but, in some cases accidentaldamage) 330. This may be done either by asking the customer to providethis information, or, if the item has been submitted along with arequest for repair or replacement, by performing diagnostic tests on theitem.

[0059] If the item has had suffered an event covered under the servicecontract, the system proceeds to Step 340 where it initiates processingof the request by the first provider. This may be done, for example, by:(1) transmitting a request and any other necessary information to thefirst provider via a computer network; (2) by placing a telephone callto a first provider customer representative; or (3) by any otherappropriate method known in the relevant field.

[0060] If the item has not suffered an event covered under the servicecontract, at Step 350, the customer service representative determineswhether the item has suffered an event covered under the insurancepolicy (e.g., the item has been stolen or damaged). This may be doneeither by asking the customer to provide this information, or, if theitem has been submitted along with a request for repair or replacement,by performing diagnostic tests on the item.

[0061] If the item has suffered a loss due to an event covered under theinsurance policy, the system proceeds to Step 360 where it initiatesprocessing of the request by the second provider. This may be done, forexample, by: (1) transmitting a request and any other necessaryinformation to the second provider via a computer network; (2) placing atelephone call to a second provider customer representative; or (3) byany other appropriate method known in the art.

[0062] If the item has not suffered any first or second propertycoverage losses, at Step 370, the customer is informed that therequested repair or replacement is not covered under the terms of theprotection program. The process then terminates at Step 380.

[0063] In one embodiment of the invention, once the request for repairor replacement is forwarded to the first provider, the request ishandled according to the claim processing method 400 depicted in FIGS.4A and 4B. When implementing this process, at Step 410, the firstprovider first provides the customer with a repair/replacementauthorization number and instructions on how to use this authorizationnumber to have the item replaced or repaired. At 420, the first providerthen generates an authorization for service of the item (e.g., repair orreplacement) and transmits the authorization to the repair depot (e.g.,via a computer network).

[0064] In one embodiment of the invention, at Step 430, the customerthen sends the item to the repair depot along with the authorizationnumber underwritten by the first provider. At Step 440, the repair depotthen receives the item and the authorization number from the customer,repairs or replaces the item, and sends the repaired item or replacementitem to the customer.

[0065] Next, at Step 450, the repair depot bills the first provider forthe repair or replacement. At Step 460, the first provider then pays therepair depot for the repair. The process then terminates at Step 470.

[0066] In one embodiment of the invention, once a request for repair orreplacement is forwarded to the second provider, the request is handledaccording to the claim processing process 500 depicted in FIGS. 5A and5B. When implementing this process, at Step 510, it is first determined(either manually or automatically) whether the customer is in a staterequiring the use of licensed claims adjusters. If so, the request istransferred, at Step 520, to a licensed claim adjuster for processing.

[0067] If the customer is not in a state requiring the use of a licensedclaims adjuster, at Step 530, the second provider provides the customerwith a repair/replacement authorization number and instructions on howto use this authorization number to have the item replaced or repaired.Next, at Step 540, the second provider generates an authorization forservice of the item (e.g., repair or replacement) and transmits theauthorization to the repair depot (e.g., via a computer network).

[0068] In one embodiment of the invention, at Step 550, the customerthen sends the item to the repair depot along with the authorizationnumber provided by the second provider. At Step 560, the repair depotthen receives the item and the authorization number from the customer,repairs or replaces the item, and sends the repaired item or replacementitem to the customer.

[0069] Next, at Step 570, the repair depot bills the second provider forthe repair or replacement. At Step 580, the second provider then paysthe repair depot for repairing or replacing the item. The process thenterminates at Step 590.

[0070] While the claim processing methods described above with respectto FIGS. 4A, 4B, 5A, and 5B are described as being performed by anprovider, as will be understood by one skilled in the relevant field,these methods could be performed by any other eligible entity.

CONCLUSION

[0071] Many modifications and other embodiments of the invention willcome to mind to one skilled in the art to which this invention pertainshaving the benefit of the teachings presented in the foregoingdescriptions and the associated drawings. For example, while thetechniques are described above as pertaining to situations in which acustomer is to be provided with one or two different property coverages(e.g., for a single item), the same or similar techniques may be used insituations in which the customer is to be provided with three or moreproperty coverages (e.g., for multiple items). Similarly, although thetechniques are described above in the context of providing coverage forvarious items (such as personal property items), similar techniques maybe used in the context of other types of property coverage or othertypes of insurance-related coverage. Therefore, it is to be understoodthat the invention is not to be limited to the specific embodimentsdisclosed and that modifications and other embodiments are intended tobe included within the scope of the appended claims. Although specificterms are employed herein, they are used in a generic and descriptivesense only and not for purposes of limitation.

We claim:
 1. A method of providing insurance to a customer, said methodcomprising the steps of: selling a service contract to said customer,said service contract providing protection against the mechanicalbreakdown or other failure of an item; and in response to said customerpurchasing said service contract, providing, at no cost to saidcustomer, insurance coverage that protects said customer against damageor other loss to said item.
 2. The method of claim 1, wherein saidservice contract provides protection against accidental damage to saiditem.
 3. The method of claim 1, wherein said step of providing saidinsurance coverage is done in order to permit the provision of saidinsurance coverage without its sale by an insurance agent.
 4. The methodof claim 1, wherein said insurance coverage is paid for by a retailerselling said item to said customer.
 5. The method of claim 1, whereinsaid insurance coverage is paid for by a manufacturer of said item. 6.The method of claim 1, wherein said insurance coverage is paid for by aservice provider that provides service or functionality for said item.7. The method of claim 1, further comprising the step of providing saidservice contract and said insurance coverage to said customer within aproduct protection program.
 8. The method of claim 7, wherein saidproduct protection program is referred to by a single identificationindicia.
 9. The method of claim 1, wherein said service contract isprovided by a first provider and said insurance coverage is provided bya second provider, said first and second providers being differententities.
 10. A method of processing a request that an item be repairedor replaced, said method comprising: receiving said request at a centralclaim processing facility; determining whether said item requiresreplacement or repair due to: (1) an event covered under a servicecontract provided by a first provider, or (2) an event covered under aninsurance policy provided by a second provider; in response todetermining that said item requires replacement or repair due to anevent under said service contract, submitting a request to said firstprovider to process said item according to said service contract; and inresponse to determining that said item requires replacement or repairdue to loss under said insurance policy, submitting a request to saidsecond provider to process said item according to said insurance policy.11. The method of claim 10, further comprising the step of processing aninsurance claim corresponding to said request that said item be repairedor replaced.
 12. The method of claim 10, wherein an individualassociated with said central claim processing facility executes saidstep of determining whether said item requires replacement or repair dueto: (1) an event covered under said service contract; or (2) an eventcovered under said insurance policy.
 13. The method of claim 10, whereinsaid step of submitting a request to said first provider is executed byan individual associated with said central claim processing facility.14. The method of claim 10, wherein said step of submitting a request tosaid second provider is executed by an individual associated with saidcentral claim processing facility.
 15. The method of claim 10, whereinan individual associated with said central claim processing facilityexecutes said steps of: determining whether said item requiresreplacement or repair due to: (1) an event covered under said servicecontract, or (2) an event covered under said insurance policy; andsubmitting a request to said first provider.
 16. The method of claim 10,wherein an individual associated with said central claim processingfacility executes said steps of: determining whether said item requiresreplacement or repair due to: (1) an event covered under said servicecontract, or (2) an event covered under said insurance policy; andsubmitting a request to said second provider.
 17. A property protectionprogram comprising: first property coverage that is paid for by a firstentity; and second property coverage that is paid for by a secondentity.
 18. The property protection program of claim 17, wherein saidproperty protection program is referenced by a single identificationindicia.
 19. The property protection program of claim 17, wherein saidfirst property coverage protects against the mechanical breakdown of oneor more items.
 20. The property protection program of claim 17, whereinsaid first property coverage protects against accidental damage to saidone or more items.
 21. The property protection program of claim 19,wherein said second property coverage protects against a loss other thanaccidental damage to said one or more items.
 22. The personal protectionprogram of claim 19, wherein said second property coverage protectsagainst the accidental damage to, or loss of, said one or more items.23. The property protection program of claim 17, wherein said firstentity is a customer who has purchased an item that is covered by saidproperty protection program.
 24. The property protection program ofclaim 23, wherein said second entity is a retailer that has sold saiditem to said customer.
 25. The property protection plan of claim 23,wherein said second entity is a service provider that is to provideservice or functionality for said item.
 26. The property protection planof claim 23, wherein said second entity is a wireless carrier thatprovides wireless service for said item.
 27. The property protectionprogram of claim 17, wherein said property protection program providesthat: (1) in response to said second entity failing to submit timelypayment for said second property coverage, said second property coveragewill be interrupted; and (2) said first property coverage will not beinterrupted in response to said second customer failing to submit timelypayment for said second property coverage.
 28. The property protectionplan of claim 27, wherein said product protection program is referencedby a single identification indicia.
 29. The property protection programof claim 27, wherein said product protection program provides that: (1)in response to said first customer failing to submit timely payment forsaid first property coverage, said first property coverage will beinterrupted; and (2) said second property coverage will be interruptedin response to said first customer failing to submit timely payment forsaid first property coverage.
 30. The property protection program ofclaim 29, wherein said product protection program is referenced by asingle identification indicia.